Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASEE HELPP Crane & Co. sold goods with a market price of $123000 on April 1 . They accepted a note from Larkspur Inc. for
PLEASEE HELPP
Crane \& Co. sold goods with a market price of $123000 on April 1 . They accepted a note from Larkspur Inc. for $123000 due in two /ears, with interest paid each year on April 1, bearing 8% interest. If 8% interest approximates the market rate of interest for this cransaction, what journal entry should be recorded to record the sale (ignore Cost of Goods sold) when the sale takes place? Debit Notes Receivable $123000, credit Sales Revenue $123000. Debit Notes Receivable $142680, credit Sales Revenue $142680. Debit Interest Receivable $9840, credit Interest Revenue $9840. Debit Interest Receivable $7380, credit Interest Revenue $7380. Crane \& Co. sold goods with a market price of $123000 on April 1 . They accepted a note from Larkspur Inc. for $123000 due in two /ears, with interest paid each year on April 1, bearing 8% interest. If 8% interest approximates the market rate of interest for this cransaction, what journal entry should be recorded to record the sale (ignore Cost of Goods sold) when the sale takes place? Debit Notes Receivable $123000, credit Sales Revenue $123000. Debit Notes Receivable $142680, credit Sales Revenue $142680. Debit Interest Receivable $9840, credit Interest Revenue $9840. Debit Interest Receivable $7380, credit Interest Revenue $7380Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started